Arco Resources Corp.
TSX VENTURE : ARR

Arco Resources Corp.

April 01, 2010 14:30 ET

Arco Announces Additional Non-Brokered Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 1, 2010) - Arco Resources Corp. (TSX VENTURE:ARR) ("Arco" or the "Company") is pleased to announce it will conduct an additional non-brokered private placement of 1,500,000 units for gross proceeds of up to $90,000, subject to the approval of the TSX Venture Exchange (the "Exchange"). This private placement is in addition to the one which closed on March 29th, 2010.

The units will be priced at $0.06 and will each consist of one common share and one non-transferable share purchase warrant (the "Warrants") exercisable for an additional common share at a price of $0.10 for two years from the date of issue. All warrants will be subject to an accelerated expiry provision such that if Arco's shares trade at or above a price of $0.20 for 20 consecutive trading days (after all hold periods expire), Arco will give notice via a news release that the warrants will expire 30 days from the date of such news release.

Arco will pay qualified parties a finder's fee in cash equal to 7.5% of the total proceeds invested by subscribers introduced to Arco by such parties, subject to the approval of the Exchange. Each qualified finder will also receive a non-transferable warrant (the "Finder's Warrant") entitling them to purchase that number of Arco common shares equal to 10% of the total number of Units purchased by subscribers introduced to Arco by such parties. Each Finder's Warrant will have terms and conditions similar to that of the Warrants issued under the private placement.

The proceeds of the private placement will be used to fund additional exploration work on Arco's Taviche, Predilecta, Cuatro Venados and Tres Hermanas properties (see our news releases dated February 9th and February 1st, 2010, respectively) and for general working capital.

Correction on Finders' Fees Paid

Arco also wishes to clarify the amount of finders' fees paid on in its non-brokered private placement which closed on March 29, 2010. Specifically, Arco issued 540,000 finder's warrants in the first tranche (rather than the 560,000 finder's warrants reported in our March 25, 2010 news release), and paid $32,925 in cash and issued 878,000 finder's warrants in the second tranche (rather than the $45,300 in cash and 1,208,000 finder's warrants reflected in our March 30, 2010 news release).

About Arco Resources

Arco holds a 100% interest in six mineral claim blocks and the right to acquire 100% of a seventh, all located in the State of Oaxaca, Mexico. The Company has two 43-101 compliant projects, the Lachiguiri project (Ag,Pb,Zn) and the Tres Hermanas project (Ag,Pb,Zn). In addition the Company has begun to focus its efforts on its Taviche and newly-acquired Predilecta claim blocks, each of which have had historical production of gold and silver. The Company currently has an agreement in principle to option a 100% interest in its Lachiguiri, Silacayoapan and Nino Perdido properties to Silex Ventures Ltd. For further information on the Company please go to www.arcoresources.com.

On behalf of the Board of Directors of Arco Resources Corp.

Warren McIntyre, President and Chief Executive Officer

Arco Resources Corp.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Arco Resources Corp.
    Warren McIntyre
    President and Chief Executive Officer
    604 639 2866
    604 662 3904 (FAX)
    www.arcoresources.com